CA Final Direct Tax Laws and International Taxation MTP May 2026: Question Paper and Solutions

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49 indexed questions. Open a question to read its full statement and available answer.

1. M/s. Trailer Limited is an Indian company. It distributed dividend to its shareholders amounting to 2,50,000 for the financial year 2024-25 in…
2. Mr. Rohan Mehta, aged 49 years, is a non-resident and a person of Indian origin during the Previous Year 2025-26. He furnishes the following details…
3. Mr. Sunny Gupta (aged 34 years) in respect of a piece of land owned by him, entered into a registered agreement for development of a real estate…
4. During the financial year 2024-25, MNO International Singapore (a company incorporated in Singapore) held shares carrying voting power of 25% in XYZ…
5. Mr. Rajat, a resident, and Mr. James, an American citizen and a non-resident in India, are both sports commentators deriving income of 7 lakh from…
6. Mr. Bunny acquired 1000 Equity shares of Parrot Limited for 400 each in May 2020. The company buyback 300 Equity shares of Mr. Bunny, as per the…
7. Blessings Pharmaceuticals Private Limited is an Indian Company, engaged in the business of manufacturing and providing access to affordable and…
8. Star Limited has two units one engaged in manufacture of textile goods and the other involved in manufacturing of chemicals. As a restructuring…
9. Mr. Karan Verma (Age 32 years) is the Marketing manager in M/s. Pinto Systems Ltd. since 01.10.2021. His income for the Financial Year 2025-26 in…
10. Examine and discuss each of the following independent cases of charitable trust/institutions based on the relevant provisions of the Income-tax Act,…
11. M/s Life Care Foundation, a trust registered under section 12AB of the Income-tax Act, 1961, runs a hospital. During the financial year 2024-25, it…
12. M/s Sunshine Care Foundation, a trust registered under section 12AB of the Income-tax Act, 1961, which runs a hospital, also paid consultancy fees…
13. Tide Ltd., an assessee, has sold goods on 12.01.2026 to Limitless Ltd., located in notified jurisdictional area (NJA), for 9.50 crores. During the…
14. Mr. Madhav, an individual carrying on retail business with turnover of 3.2 crores in the P.Y.2024-25. He made contract payment for repair of…
15. Mr. Raghav, who gets his accounts audited under section 44AB filed his original return of income under section 139 for A.Y.2024-25 on 28.12.2024…
16. Sky Ltd. took on sub-lease a building from James, an individual, with effect from 1.9.2025 on a rent of 20,000 per month. It also took on hire…
17. Silver BV is a foreign company incorporated in Belgium. It is engaged in diamond mining and trading of raw diamonds. It sells raw diamonds globally.…
18. Answer any one of the following two sub-parts (i) or (ii) on the basis of decided case laws, bringing out the following – (1) Issue involved (2)…
19. Mr. Ashish filed his return of income for A.Y. 2025-26 by declaring a total income of 10 lakhs. His case was selected for scrutiny assessment and an…
20. Travel Ltd. received the draft order from the Assessing Officer as per section 144C of the Income-tax Act, 1961 due to variations determined by the…
21. In the following independent circumstances, discuss whether the provisions of GAAR would be applicable: R Inc., a company incorporated in Country M,…
22. Dynasty Ltd., an Indian company, incorporates a wholly owned subsidiary Company C, in Country X which is a Low Tax Jurisdiction with equity share…
23. Explain the correctness or otherwise of the following statements giving proper reasons thereof: Mr. Karan Malhotra, a resident individual, is…
24. M/s Solar Ltd., an Indian public sector company, wants to seek advance ruling from the Board for Advance Rulings (BAR) in respect of a matter…
25. What is meant by Digital economy? What are the taxation issues in E-Commerce? List out the OECD recommendations under Action Plan 1 which deals with…
26. Mr. Arun, an Indian citizen got a job offer from M/s Moon Star Inc., a Dubai-based company of AED 10,500 per month. He left for Dubai on 29.3.2025…
27. The Assessing Officer surveyed Adisha & Hotels, which was within his jurisdiction, at 11:30 p.m. on 15.8.2025 for the purpose of obtaining…
28. Mr. Raghav, a retail trader, sold a residential house to Mr. Varun, a wholesale trader for 50 lakhs on 1.2.2026, when the stamp duty value was 70…
29. Mr. Karan, Managing Director of Kalyan Metals Private Ltd, holds 70% of its paid up capital of 20 lakhs. The balance as at 31.03.2025 in General…
30. Mr. Beenu Sharma, furnishes the following particulars for the previous year 2025-26. What would be the amount of deduction allowable under section…
31. Mr. Sujay, a resident Indian aged 68 years, has income of 48 lakhs under the head "Profits and gains of business or profession”. One of his…
32. SH Ltd. is a listed company located in Delhi. It is engaged in multiple activities at different locations. Books of account are maintained by each…
33. Gautam Ltd., a domestic company, provides the following information of its Statement of Profit and Loss for the year ended on 31/03/2026. It earned…
34. Orange Ltd., a non-resident Japanese company, has the following incomes in India during the year ended on 31.03.2026: (i) Dividend income of…
35. A public charitable trust engaged in "Relief of Poor" and registered under section 12AB, for the previous year ending 31.3.2026, derived gross…
36. Sintheta Limited, a company incorporated in Mauritius, has a branch office in Chennai opened in April, 2025. The Indian branch has filed return of…
37. The Income-tax Act, 1961 provides for taxation of a certain income earned in India by Mr. Xavier, a non-resident. The Double Taxation Avoidance…
38. Ram (aged 35 years) is working with BCD Ltd. He is entitled to a salary of 85,000 per month w.e.f. 1.4.2025. He has a house property which is…
39. On 20.6.2025, Mr. Shyam, a resident, made three separate transactions for acquiring house property at Mumbai from Mr. Manoj for a consideration of…
40. Mr. Arvind has been running a sole proprietary business with turnover of 202 lakhs for the F.Y.2024-25. He pays a monthly rent of 25,000 for the…
41. In case of an assessee, the Assessing Officer passed an order u/s 143(3) on 15/12/2023. CIT passed the order u/s 263 on 26.03.2026 holding that the…
42. Mr. Vivek furnished his return of income for A.Y.2025-26 declaring total income of 28,00,000. He received an assessment order under section 143(3)…
43. ABC Ltd., operating in India, is the dealer for the goods manufactured by Ben Ltd. of Japan. Ben Ltd. owns 55% shares of ABC Ltd. and out of 7…
44. RST Inc, a US company having its place of effective management also in the USA, has advanced a loan equivalent to 170 crores to Shiva Ltd., an…
45. Anahita Ltd., an Indian company engaged in producing electrical equipment, during the financial year 2025-26, paid interest of 95 lakhs to Giggle…
46. Rahul, an Indian citizen, left India and settled in United Kingdom from 10.4.2016. He had never left India previously since April, 2008. He acquired…
47. Explain the nexus approach recommended by OECD in BEPS Action Plan 5 which has been adopted in the Income-tax Act, 1961.
48. Critically examine the following cases and discuss whether the provisions of General Anti-avoidance Rules (GAAR) can be invoked in these cases? (i)…
49. The Indian branch of Dhanush Co. Ltd, Country K has carried out some transactions with Light Co. Ltd, Bengaluru in the financial year 2025-26. The…